Coinbase’s Control of Bitcoin ETF Custody Raises Concerns

Concerns have been raised over Coinbase's dominance in Bitcoin ETF custody, as the leading digital asset exchange serves as custodian for eight out of the eleven approved ETFs. Experts warn that such concentration of responsibility within one platform poses risks and highlights the need for diversification and risk mitigation in the Bitcoin ETF ecosystem. The SEC has also expressed reservations about Coinbase's role, emphasizing the importance of addressing concentration risks for the stability and integrity of the market. Coinbase is striving to mitigate conflicts and establish robust governance practices, but industry experts urge regulators and market participants to evaluate the potential risks and explore measures to ensure long-term success and stability.